Personal Responsibility vs Credit Card Companies

[Logical]

I say that these companies are abusing the system by sucking in our young, who don't really understand personal finance issues, let alone lifetime credit ratings. Yes you can influence your children to be financially responsible but some people actually have what seems to be an addiction to spending (my former wife certainly was that way and I guarantee she did not learn if from her parents).

Sending these credit cards to the young people between 16 and 21 just because their parents have good ratings are unfair to these young adults. They need to earn there credit rating. This is almost as bad as tobacco companies luring in minors.

Originally Posted by Vlad Logicslav

I say that these companies are abusing the system by sucking in our young, who don't really understand personal finance issues, let alone lifetime credit ratings. Yes you can influence your children to be financially responsible but some people actually have what seems to be an addiction to spending (my former wife certainly was that way and I guarantee she did not learn if from her parents).

Sending these credit cards to the young people between 16 and 21 just because their parents have good ratings are unfair to these young adults. They need to earn there credit rating. This is almost as bad as tobacco companies luring in minors.

When was the last time they "sent" credit cards to people between 16 and 21? Quite a few years ago that practice was stopped and now they send applications out pretty freely. You have to fill it out and send it in, that puts more of the blame on the individual. The credit card companies issuing cards to those that young should have their heads examined, but they are not the only ones at fault.

[Logical]

Originally Posted by Electric

When was the last time they "sent" credit cards to people between 16 and 21? Quite a few years ago that practice was stopped and now they send applications out pretty freely. You have to fill it out and send it in, that puts more of the blame on the individual. The credit card companies issuing cards to those that young should have their heads examined, but they are not the only ones at fault.

They have been sending preapproved applications to all three of my kids since they were 16, almost everyone of my coworkers is or has experienced the same thing.

[Darkwolfe]

Where did that come from???

Not that I can argue your statement at all, because it is quite true. I bombed pretty badly with credit cards myself in my early 20s. However I learned from it too.

Rule #1. Never make the minimum payment. Pay four or five times that amount every month.

Rule #2. Make several payments a month if possible. Throw $20-$30 a paycheck at it.

Rule #3. If you use it like cash, it'll keep you from nibbling out of the vending machines at work, cause you won't have any loose change in your pocket. Some bonehead steals your wallet, you can call the CC company immediately and keep your liability down to $50 or so. If you had cash in it, it's gone.

[Logical]

Originally Posted by Darkwolfe

Where did that come from???

Not that I can argue your statement at all, because it is quite true. I bombed pretty badly with credit cards myself in my early 20s. However I learned from it too.

Rule #1. Never make the minimum payment. Pay four or five times that amount every month.

Rule #2. Make several payments a month if possible. Throw $20-$30 a paycheck at it.

Rule #3. If you use it like cash, it'll keep you from nibbling out of the vending machines at work, cause you won't have any loose change in your pocket. Some bonehead steals your wallet, you can call the CC company immediately and keep your liability down to $50 or so. If you had cash in it, it's gone.

It came from my thread on bankruptcy being headed for a diversion. So I created a thread on the diversionary topic instead.

Good policies to live by, by the way. Even better is never charge more in one month than you can pay off in the next billing cycle.

Originally Posted by Vlad Logicslav

They have been sending preapproved applications to all three of my kids since they were 16, almost everyone of my coworkers is or has experienced the same thing.

How many times has your kids filled out the form and sent them in? If they have no income most times they are rejected. Some are rejected if they do not meet the minimum income standards.

Kids with credit cards (under 18) should be supervised or trained how and why to use them. Too many ma's and pa's give the kids the cards and then pay the bills for them, now that's a real lesson in life. Let mama and daddy pay the bills.

[Logical]

Originally Posted by Electric

How many times has your kids filled out the form and sent them in? If they have no income most times they are rejected. Some are rejected if they do not meet the minimum income standards.

Kids with credit cards (under 18) should be supervised or trained how and why to use them. Too many ma's and pa's give the kids the cards and then pay the bills for them, now that's a real lesson in life. Let mama and daddy pay the bills.

All of them have had or currently have approved credit cards. My oldest messed up with hers I bailed her out, made her pay me back and made her promise not to accept anymore. When we tore up her card she had built up 5K in debt and had a 10K credit limit. Trust me when they say preapproved, they mean it. They may only give them a card with a 300 dollar limit but they will send them one.

[Darkwolfe]

Originally Posted by Vlad Logicslav

Good policies to live by, by the way. Even better is never charge more in one month than you can pay off in the next billing cycle.

Truth, but not always possible. Sometimes you are going to get stuck with something large, like a car repair, or a planned large purchase.

I tend to use mine for just about everything from gas to groceries. I don't carry my checkbook at all anymore.

[Logical]

Originally Posted by Darkwolfe

Truth, but not always possible. Sometimes you are going to get stuck with something large, like a car repair, or a planned large purchase.

I tend to use mine for just about everything from gas to groceries. I don't carry my checkbook at all anymore.

Just out of curiousity why not use one of those Bank Cards that draws against your checking account unless you exceed your account balance then it becomes credit? I must say I like that card sort of a super debit card.

Originally Posted by Vlad Logicslav

All of them have had or currently have approved credit cards. My oldest messed up with hers I bailed her out, made her pay me back and made her promise not to accept anymore. When we tore up her card she had built up 5K in debt and had a 10K credit limit. Trust me when they say preapproved, they mean it. They may only give them a card with a 300 dollar limit but they will send them one.

How did she get $5000 in debt with a $300 limit?

Originally Posted by Vlad Logicslav

Just out of curiousity why not use one of those Bank Cards that draws against your checking account unless you exceed your account balance then it becomes credit? I must say I like that card sort of a super debit card.

I have one of those, but something you must consider is that if you get out of control how will it affect your budget? My card is automatically cleared when the direct deposit is made. If I'm $4000 in the hole and my direct deposit is $3000, I'm still $1000 in the hole and paying interest, plus I have to use the card to pay my normal bills.

Credit without fiscal responsiblity is a disaster waiting to happen.

[el borracho]

A couple of thougts:

1) I thought there were limits to legal contracts with minors. Aren't parents financially responsible for children under 18 and wouldn't the parents have to sign the application for their underage children to receive the credit card? If so, then it is the parents fault for co-signing on something that the kid is not ready for.

2) Kids have to grow the "f" up sometime- as a society we have determined that to be 18 (legal adult). If someone is not financially responsible at/ by 18, then they probably won't be by age 19 or 20, either. Getting in financial trouble isn't the end of the world as long as the person learns from the mistake and becomes financially responsible.

[Otter]

My freshmen year in college I was given a $1,500 credit line through Citibank. My income was whatever my student loans brought in and a three day a week waitering job at Red Lobster and they were aware of my money intake.

I ran it up and it eventually went into a collection account.

Yeah, it was stupid on my part but WTF do you really know about that shit when your 20 years old.

The fault falls on both sides but I do agree CC companys exploit the situation.

Three more years till that blemish is off my credit record.

[Logical]

Originally Posted by Electric

I have one of those, but something you must consider is that if you get out of control how will it affect your budget? My card is automatically cleared when the direct deposit is made. If I'm $4000 in the hole and my direct deposit is $3000, I'm still $1000 in the hole and paying interest, plus I have to use the card to pay my normal bills.

Credit without fiscal responsiblity is a disaster waiting to happen.

Absolutely true. you still have to keep track of your account and do the right things financially. It is just really convenient to use that instead regular credit cards and always have to write a check to pay the bill. I rarely spend more than I have in my account (in fact I have a horrible habit of having far too much in my checking account, example currenly 11,000+) and just find it very convenient.

[Logical]

Originally Posted by Electric

How did she get $5000 in debt with a $300 limit?

They raise the limit constantly as long as you make the minimum payments. She was responsible enough to be paying the minimums.